One third of affluent investors are using social media platforms for personal finance and investing purposes, according to a new report.
Cogent Research, Cambridge, Mass., published this finding in a survey, “Social Media’s Impact on Personal Finance and Investing. The report is based on a nationally representative survey of over 4,000 investors with more than $100,000 in investable assets.
The survey shows that 34 percent of affluent investors use social media platforms like Facebook, LinkedIn, Twitter, YouTube and company blogs for personal finance and investing purposes. Also, nearly 70 percent of respondents have reallocated investments; or they began or altered relationship with investment providers based on content found through social media, reflecting the importance of strong social media strategy for asset managers and distributors.
The report adds that investors use social media for personal finance and investing to form impressions about providers and their decisions to use a firm’s investment solutions. They primarily turn to social media to conduct research on investing, products and companies or to seek advice regarding investment decisions. “Today’s investors are scrutinizing traditional sources with content and commentary they are finding through social networks and are becoming much more critical and conversant when it comes to their investment choices,” says Remy Domler Morrison, project director and co-author of the report. “On a positive note, social media is also motivating investors to engage more with their advisors and investment firm representatives, which can lead to more asset gathering opportunities for providers.”
The survey goes on to list the top 10 brands with the highest ratio of positive to negative impressions via social media. These include:
- Fidelity investments
- Charles Schwab
- John Hancock
- American Funds
- Wells Fargo
- T. Rowe Price